NEW ZEALAND ACTS.

Ashburton Guardian, Volume 61, Issue 244, 28 July 1941, Page 3

NEW ZEALAND ACTS.

JAPANESE ASSETS FROZEN. STATEMENT BY MR NASH. (P.A.) W.EILLINGTON 1 , July 27“As the people of the Dominion are aware, the military occupation of strategic bases in Indo-Chiua by Japan is a matter of ‘grave moment to the countries in the Pacific,” said the Hon. AV. Nash to-night. “The United States has reacted to the Japanese southward move by freezing assets. The United Kingdom and other governments of the British Commonwealth are taking parallel action.” In presenting their demands ior the military occupation of bases in Indo-China the Japanese made it plain that they were prepared to use force if necessary, and the fact that Vichy acquiesced without a show ot resistance does not alter the fact that the naval and military bases being occupied now were in reality taken under duress. “In the' circumstances the response of the governments’ of the British Commonwealth and the United States has been immediate. With these reactions the New Zealand Government is in total agreement, however reluctant we may be to interfere with normal trading relations. i have’ therefore to- announce that New Zealand is taking parallel action with the other governments of the British Commonwealth. “Nothwithstanding that a permit or exchange authority may already have been issued by the 1 Reserve Bank, no remittance to any country in respect of any trade or other transaction with the Japanese Empire or by or on behalf of any Japanese national or Japanese controlled firm may be made without prior confirmation from the Reserve Bank. The measures are also applicable to Manchuria. It is iegardecl as of assistance to China that this should he done. The requirement outlined will not necessarily result in a complete stoppage of exchange transactions. In order to co-operate with, other British Commonwealth governments and the United States it is desirable that every transaction including those already initiated he carefully reviewed. The restriction on remittances is operative immediately. Though the effect may be an almost complete stoppage of trade with Japan, at least for the time..being, it is not proposed to cancel existing import and export licences. “Another step taken concerns the trade treaty with Japan. In 1928 New Zealand concluded Ivy an exchange oi Notes an arrangement by which the Japanese and New Zealand Governments engaged to accord each other the most favoured nation treatment. Notice was given to-day to the Japanese representative in Now Zealand that this , will no longer he accorded after the expiration of the three months’ notice provided for in the 1928 arrangement.”